Rumors which surfaced today, February 3, of two bookings in Turkey’s deep sea scrap market have indicated a price increase. The rise in question had been anticipated late last week and has not come as a surprise.
An ex-Finland cargo is rumored to have been bought by a Marmara-based producer with the HMS I/II 80:20 scrap price standing at $349/mt CFR. This level is similar to the price recorded in the most recent ex-US booking. “For this grade this is normal,” a source commented, adding that not all ex-Baltic scrap deals may reach this level just yet. The buyer in question is reported to have concluded an ex-Belgium deal. However, the details circulating in the market are not concrete and have not been confirmed by the buyer or the seller. European HMS I/II 80:20 scrap prices are expected to move up at least to $345/mt CFR, considering the ex-US and ex-Finland bookings done recently.
Meanwhile, market players are waiting for China to return to the international market from its week-long holiday. Turkey’s domestic rebar prices have moved up by another $5/mt today and are now standing in the range of $555-580/mt ex-works. Though scrap has jumped to $349/mt CFR in the latest ex-US deal, in the billet segment there have been no fixed prices as Asian billet sellers have also been absent due to the Chinese New Year holiday. The SteelOrbis reference price for ex-Russia billet has settled at $430/mt FOB Black Sea, versus $420-430/mt FOB seen in deals last week.
Meanwhile, US President Donald Trump has slapped tariffs on Canada, Mexico and China at 25 percent, 25 percent and 10 percent, respectively. Explaining the decision, the White House in its statement said, “The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA).” The US dollar has shown record strength against the Chinese yuan, while the Canadian dollar has depreciated to its lowest level against the US currency since 2003. Trump also said he plans to announce tariffs for the European Union in the future. The global markets have been impacted by these developments and are being monitored closely by Turkish players.